IncomeSTKd 1x Bitcoin & 1x Gold Premium ETF (ISBG)

Overview

ISBG aims to achieve total returns by providing simultaneous leveraged exposure to both bitcoin and gold, striving for a beta of approximately 1.0 for each asset. The strategy merges the returns from both bitcoin and gold by combining adaptive investment approaches while also seeking to generate income through an overlay of options premium strategies. To reach its target beta levels, the fund invests in various instruments related to both bitcoin and gold while utilizing leverage to enhance total returns. This approach entails investing in futures and derivatives, as well as cash equivalents, to manage risk and meet investment objectives. Overall, ISBG positions itself to navigate the fluctuations of the asset classes while aiming for steady returns through diversified strategies.

Products and Services

• Bitcoin Futures:

  The fund invests in bitcoin futures contracts to gain efficient exposure to the price movements of bitcoin. Futures contracts are routinely rolled over to maintain consistent exposure while allowing the fund to leverage its positions.

• Bitcoin ETFs and ETPs:

  Investment in Exchange-Traded Funds (ETFs) and Exchange-Traded Products (ETPs) that track the price of bitcoin provides a diversified method for gaining exposure to this asset class while potentially reducing risk through broader market inclusion.

• Options on Bitcoin Indices:

  This service allows the fund to use options strategies to capitalize on fluctuations in bitcoin indices, aiming to both hedge risks and exploit short-term price movements to generate additional income.

• Gold Futures:

  Similar to bitcoin, the fund invests in gold futures contracts, providing leveraged exposure to gold prices. This strategy balances the investment in bitcoin by taking advantage of gold's historical role as a store of value and hedge against inflation.

• Gold ETFs and ETPs:

  Investing in ETFs and ETPs focused on gold enables diversified exposure to gold investments while allowing the fund to participate in price movements without the need to handle physical assets directly.

• Leverage Strategies:

  The use of leverage amplifies the potential returns from both bitcoin and gold investments, providing $1 exposure to each asset for every dollar invested, thereby stacking total returns across both asset classes.

• Collateral Investments:

  To manage liquidity and risk, ISBG typically maintains between 10% to 65% of net assets in collateral investments such as US Treasury bills, money market funds, and cash equivalents, allowing flexibility in response to market movements.

• Cayman Islands Subsidiary Investment:

  The fund may also allocate up to 25% of its assets into a wholly owned subsidiary based in the Cayman Islands, providing additional investment opportunities and potentially advantageous tax treatment for offshore investments.